A job order cost sheet for Lowry Company is shown below.

Job No. 92 For 2,000 Units (LO 2, 3, 4, 5), AP Direct Direct Manufacturing Date Materials Labor Overhead Beg. bal. Jan. 1 5,000 6,000 5,100 8 6,000 12 8,000 6,400 25 2,000 27 4,000 3,200 13,000 18,000 14,700 Cost of completed job:
Direct materials $13,000 Direct labor 18,000 Manufacturing overhead 14,700 Total cost $45,700 Unit cost ($45,700 4 2,000) $22.85.

Instructions

(a) On the basis of the foregoing data, answer the following questions.
(1) What was the balance in Work in Process Inventory on January 1 if this was the only unfi nished job?
(2) If manufacturing overhead is applied on the basis of direct labor cost, what overhead rate was used in each year?

(b) Prepare summary entries at January 31 to record the current year’s transactions pertaining to Job No. 92.AppendixLO1